Review to assess prospects for improving customer benefit and innovation through water competition
Posted: Tuesday 13th November 2007
The water industry is to sponsor an independent review of options for extending competition in water. The work will be carried out by the Oxford-based Regulatory Policy Institute (RPI) and is due for completion early next year.
Among the main challenges facing water companies at present are how to offer levels of service that match consumer expectations and find innovative ways of meeting their obligations within tight efficiency targets. Industry players and stakeholders alike think that more competition could be the answer. Several investigations are underway, including one led by industry regulator Ofwat.
This is the background to a decision by Water UK’s Council in September to sponsor a review of the full range of options for water competition. This review will be an informed and objective contribution to the public policy debate on water competition and is undertaken on behalf of the industry, its stakeholders and the public.
The project will:
• assess competition options for their potential to provide benefit to customers and consumers and stimulate innovation and efficiency;
• be undertaken by a research organization respected for its experience and independence;
• involve informed and interested stakeholders; and
• result in an independent report which will be in the public domain without necessarily reflecting the sponsors’ views.
Earlier this month the Council steering committee confirmed the appointment of the Regulatory Policy Institute, led by Professor George Yarrow, Director of the RPI and Emeritus Fellow of Hertford College, Oxford, following a competitive selection process.
The work, which begins immediately, consists of three main strands:
1 academic assessment of options to identify those with most potential;
2 engagement with stakeholders to gather views and test preliminary conclusions; and
3 publication and communication of findings.
Water UK Chief Executive Pamela Taylor said:
“It’s vital for the future of water services in this country that we take decisions about the role of competition in light of the best information and advice. The RPI review will certainly meet that standard and I’m confident will make a real contribution.”
“Water UK members, in common I’m sure with all our stakeholders, will look forward to reading and commenting on the experts’ view.”
